The owners of a corporation are the __________ (shareholders of the company, board of directors, or management team members). The primary goal of the corporate management team is to (minimize or maximize) the shareholder's wealth by __________ (minimizing or maximizing) the company's (employee retention and efficiency, company's stock price, or company's production costs) over the long run.
The owners of a corporation are the __________ (shareholders of the company, board of directors, or management team members). The primary goal of the corporate management team is to (minimize or maximize) the shareholder's wealth by __________ (minimizing or maximizing) the company's (employee retention and efficiency, company's stock price, or company's production costs) over the long run.
Related questions
Question 6
The firm's information system:
| A. | may include other information such as customer satisfaction surveys, in addition to financial information | |
| B. | none of the answers are correct | |
| C. | is always a single integrated system | |
| D. | includes only financial information | |
| E. | is less important as a firm grows in size |
2 points
Question 7
Identify all of the correct statements:
| a. | Managers act in their own interests, and so there is no way to align their interests with those of the owners | |
| b. | None of the answers are correct | |
| c. | To motivate managers in non-profit firms, no employee incentives are needed | |
| d. | Managers naturally seek to maximize shareholders' wealth | |
| e. | To align the interests of managers and owners, owners must design systems to monitor and reward management behavior that increases the firm's profits |
2 points
Question 8
Managerial accountants:
| a. | are mainly score-keepers | |
| b. | are internal consultants | |
| c. | focus on calculating product costs | |
| d. | are corporate cops | |
| e. | are mostly internal consultants and corporate cops |
2 points
Question 9
John invested $12,000 in the stock of Hyper Cyber. Eight years later, Hyper Cyber's shares reached $125,000, but John held onto the shares in the belief that their price would double in the next five years. Unfortunately, Hyper Cyber did not double. Rather the market value of John's shares today is $4,000. If the shares were sold today and the proceeds invested in another investment, they would likely earn 5% per annum. Which of the following terms and values is correct?
| a. | $250,000 is the opportunity cost | |
| b. | $12,000 is the sunk cost | |
| c. | $2,000 is the opportunity cost | |
| d. | $125,000 is the opportunity cost of selling the shares today |
2 points
Question 10
Davos Inc. makes fiberglass ski-boards in Switzerland. Identify the correct matching of terms.
| a. | None of the answers are correct | |
| b. | Fiberglass is factory overhead | |
| c. | Plant real estate taxes are a period cost | |
| d. | Payroll taxes for workers in the Packaging Department are direct labor | |
| e. | Depreciation on delivery trucks is a product cost |
